SIGAR

SIGAR OVERSIGHT ACTIVITIES
• Afghan Security Forces Capacity and Capabilities
Afghanistan needs a stable security environment to prevent it from
again becoming a safe haven for al-Qaeda or other terrorists. More
than half of all U.S. reconstruction dollars since 2002 have gone toward
building, equipping, training, and sustaining the Afghan National
Defense and Security Forces (ANDSF). However, the ANDSF has not
yet been capable of securing all of Afghanistan and has lost territory
to the insurgency. As of August 28, 2016, USFOR-A reported that
only 63.4% of the country’s districts were under Afghan government
control or influence a reduction from the 72% as of November 27, 2015.
Capability gaps in key areas such as intelligence, aviation, and logistics
are improving, but still hinder effectiveness.
• Corruption
Corruption continues to be one of the most serious threats to the U.S.-
funded Afghanistan reconstruction effort. Corruption has eroded state
legitimacy, weakening the government’s ability to enlist popular support
against the insurgency, discouraging foreign investment and economic
growth, as well as seriously diminishing Afghan military capability.
• Sustainability
Much of the funding the United States has committed to reconstruction
projects and programs risks being wasted because the Afghans
cannot sustain the investment—financially or functionally—without
massive, continued donor support. Donors were expected to finance
approximately 69% of Afghanistan’s $6.5 billion fiscal year (FY) 1395
national budget (December 22, 2015–December 21, 2016), mostly
through grants. At 2016 conferences in Warsaw and Brussels, the United
States and other donors pledged to maintain assistance to Afghanistan
at or near current levels through 2020.
• On-budget Support
On-budget assistance includes direct assistance (also referred to as
bilateral, government-to-government assistance) and assistance that
travels through multi-donor trust funds before reaching the Afghan
government. On-budget assistance is intended to reduce costs, increase
Afghan government ownership, and build the Afghan institutional
capacity for managing their own budget. However, on-budget assistance,
whether delivered directly or through multilateral trust funds, leads to
reduced U.S. control and visibility over these funds. Given the evidence
that the Afghan government still cannot manage and protect these funds
and may not use them appropriately, the Department of Defense is
planning to reduce some of its on-budget assistance.
• Counternarcotics
The cultivation and trafficking of illicit drugs puts the entire U.S.
investment in the reconstruction of Afghanistan at risk. Although
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SPECIAL INSPECTOR GENERAL I AFGHANISTAN RECONSTRUCTION